Croydon Council is flogging a stake in some of the town's best known buildings - to pay for its new offices to be built.

A 50 per cent share of the council's headquarters at Taberner House, its offices in Fell Road, the College Green site and the Tamworth Annex site is being offered.

The council hopes outside investment from a single partner will allow it to regenerate the buildings at a cheaper cost to taxpayers.

Those behind the move said guarantees would be put in place to protect the borough's interests. But critics fear assets which belong to the borough are being sold on the cheap.

Private sector investors from across Europe will be offered a 50 per cent stake in a company that will oversee the development of the buildings, with new council offices top of a list of priorities.

Councillor Tim Pollard said: "Clearly, we don't have funds to undertake development ourselves and this is why our research leads us to believe that setting up a public-private regeneration company with an investment partner is the way to realise our ambitions for the borough and also to secure a replacement headquarters for the council."

As publicly owned assets, the buildings belong to the borough and not the council, yet the taxpayer has not been consulted, leading to condemnation of the plans. Councillor Tony Newman, leader of the Labour opposition, said: "My gravest concern is that these are the taxpayers' assets and therefore owned by taxpayers and not the council. It is important to put the taxpayer first."

And Steve Collins, chairman of Canning and Clyde residents association, echoed Coun Newman's fears.

He said: "I'm not happy our elected council is about to flog off our public assets. I would very much like to know more." Under the plans, an urban regeneration company looking to develop the buildings is to be set up. Coun Pollard said taxpayers need not be alarmed and that the system was used extensively elsewhere.

But he did admit some would be unhappy that shares in buildings which belong to the borough were being sold to private companies.

He also refused to reveal how much the sites were worth because the council was "trying to get the best price for them", but admitted the figure was in the "high tens of millions". "I think the public will see the business of the council as providing services,"

Coun Pollard added, "How we do that doesn't really matter as long as we are getting good value for money."

He used the example of Taberner house to illustrate his point. The 1960s office block is in need of a face-lift, which could potentially cost the borough millions of pounds.

"I think if the people of Croydon were faced with the choice of throwing lots of money at Taberner House or doing something more creative that also makes the taxpayer more money they will know it is a significantly better option."

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